Loan balance over time
| Total of 360 payments | $582,806 |
| Principal | $203,200 |
| Interest | $263,026 |
| Taxes | $89,910 |
| Insurance | $26,670 |
| HOA fees | $0 |
What these numbers come from
- Median home value
- $254,200
- Median tax bill
- $2,988
- Effective tax rate
- 1.18%
- Rank of 51
- 13th highest
Michigan taxes property at about 1.18% of value against 0.89% nationally. On a $254,000 home that is $61 a month more than the same house would cost in taxes at the national rate. Rates are set by counties, cities and school districts, so your own bill will differ from the state median — put your actual figure in the property tax field and the payment updates.
Tax and home value figures: U.S. Census Bureau, American Community Survey 2024 1-year estimates. Insurance is estimated at 0.35% of home value per year — there is no comparable public per-state dataset, so treat it as a placeholder and replace it with your own quote. The interest rate is the national Freddie Mac 30-year average of 6.58%; this site does not publish state-level rate quotes.
Monthly cost across Michigan home prices
20% down, 30-year fixed at 6.58%, with Michigan property tax of 1.18% and estimated insurance.
| Home price | Loan | P&I | Tax/mo | Full payment |
|---|---|---|---|---|
| $153,000 | $122,400 | $780 | $150 | $975 |
| $203,000 | $162,400 | $1,035 | $200 | $1,294 |
| $254,000 median | $203,200 | $1,295 | $250 | $1,619 |
| $318,000 | $254,400 | $1,621 | $313 | $2,027 |
| $381,000 | $304,800 | $1,943 | $375 | $2,428 |
The gap between the P&I column and the last one is what a mortgage quote leaves out. In Michigan taxes alone add $250 a month on a median-priced home.
Amortization schedule
| Date | Principal | Interest | Tax, Ins. & HOA | Balance |
|---|---|---|---|---|
| Aug | $181 | $1,114 | $324 | $203,019 |
| Sep | $182 | $1,113 | $324 | $202,837 |
| Oct | $183 | $1,112 | $324 | $202,654 |
| Nov | $184 | $1,111 | $324 | $202,471 |
| Dec | $185 | $1,110 | $324 | $202,286 |
| 2026 | $914 | $5,561 | $1,619 | $202,286 |
| Jan | $186 | $1,109 | $324 | $202,100 |
| Feb | $187 | $1,108 | $324 | $201,913 |
| Mar | $188 | $1,107 | $324 | $201,725 |
| Apr | $189 | $1,106 | $324 | $201,536 |
| May | $190 | $1,105 | $324 | $201,346 |
| Jun | $191 | $1,104 | $324 | $201,155 |
Refinancing in Michigan
The arithmetic is the same everywhere: refinancing pays off when the monthly saving clears the closing costs before you sell or refinance again. What differs by state is the cost of getting there — recording fees, transfer and mortgage taxes, and whether an existing tax assessment survives the new loan.
Work the break-even with the refinance calculator, or check this week’s national average rates.
Michigan home loans in detail
Michigan Mortgage Overview
Michigan is the state of the Great Lakes. It's largely surrounded by bodies of water which helps create its beauty and wonder. Michigan has many first-time homebuyer programs available and the cost of living is affordable. The average home costs $270,000, making it an affordable place to live.
If you're thinking of buying a home in Michigan, here are the home loan options:
Michigan FHA loans
You don't need perfect credit to get a loan. The FHA loan requires just a 580 credit score, which is almost 100 points lower than conventional loans. FHA loans require just 3.5 percent down and they even allow credit scores as low as 500 - 579 if you put down 10 percent. FHA loans have flexible underwriting guidelines and require mortgage insurance for the life of the loan.
Michigan VA loans
Veterans of the military often don't have a lot of money saved to buy a home. The VA solves that problem by providing 100 percent financing and flexible underwriting guidelines. Veterans need just a 620 credit score and a decent debt ratio to qualify. VA loans don't require mortgage insurance.
Michigan USDA loans
If living in less populated areas don't bother you and you have low to moderate income, you may be eligible for a USDA loan. This 100 percent financing loan makes it easy to buy a home to live in (investment properties aren't allowed). You need just a 640 credit score and a 41 percent debt ratio to qualify.
Michigan conventional loans
Conventional loans are the loans everyone wants. They have low interest rates and only charge Private Mortgage Insurance until you owe less than 80 percent of the home's value. You need a 660+ credit score and a low debt ratio to qualify.
First-Time Homebuyer Programs in Michigan
If you're a first-time homebuyer, Michigan has many first-time homebuyer programs to help:
MI Home Loan
This low interest loan provides up to $7,500 in down payment assistance to help you buy your first home. You need a 640 credit score and the home must cost $224,500 or less.
MI Home Loan Flex
This is another low interest loan for MI buyers with more flexible guidelines, but you need a 660 credit score to qualify. Like the MI Home Loan the Flex loan provides up to $7,500 in down payment assistance.
Michigan Mortgage Credit Certificate
If your income limits are within the regulations, you may deduct up to 20 percent of the annual interest paid on your mortgage. You may take the credit for the entire term of the loan up to 30 years.
Michigan mortgage FAQ
- How much is property tax on a home in Michigan?
- Michigan homeowners pay an effective property tax rate of about 1.18 percent of home value — the 13th highest of the 50 states and DC. On the state's median home value of $254,200 that works out to roughly $2,997 a year, or $250 a month added to the mortgage payment. The figures come from the Census Bureau's American Community Survey 2024 1-year estimates; your own bill depends on the county and city rates where the home sits.
- What is the monthly payment on a median-priced Michigan home?
- At $254,000 with 20 percent down and the current 6.58 percent national 30-year fixed average, principal and interest come to about $1,295 a month. Adding Michigan property tax of roughly $250 a month and an estimated $74 of homeowner insurance brings the full payment to around $1,619.
- What types of mortgages can you get in Michigan?
- Michigan offers FHA loans needing just a 580 credit score and 3.5 percent down (500 - 579 scores qualify with 10 percent down), VA loans with 100 percent financing and no mortgage insurance for veterans with 620 credit, USDA loans with zero down and a 640 score in less populated areas, and conventional loans for buyers with a 660+ credit score and low debt ratios.
- What does Michigan offer first-time homebuyers?
- Michigan runs the MI Home Loan, a low-interest mortgage with down payment assistance for buyers with a 640 credit score, and the MI Home Loan Flex with more flexible guidelines for those with 660 credit. The Michigan Mortgage Credit Certificate also lets income-qualified buyers deduct up to 20 percent of the annual mortgage interest paid, for up to 30 years.
- What credit score is needed for a Michigan home loan?
- FHA loans in Michigan accept a 580 credit score, almost 100 points below conventional requirements, and even 500 - 579 with 10 percent down. VA loans need about 620, USDA loans require 640 with a 41 percent debt ratio, and conventional loans expect 660 or higher. The MI Home Loan requires 640 while the MI Home Loan Flex needs 660.
Property tax in every state
Effective rate on owner-occupied value, highest bills first in each column.
- Alabama0.38%
- Alaska1.06%
- Arizona0.43%
- Arkansas0.52%
- California0.71%
- Colorado0.49%
- Connecticut1.66%
- Delaware0.47%
- District of Columbia0.63%
- Florida0.75%
- Georgia0.74%
- Hawaii0.27%
- Idaho0.43%
- Illinois1.92%
- Indiana0.74%
- Iowa1.29%
- Kansas1.25%
- Kentucky0.71%
- Louisiana0.53%
- Maine0.91%
- Maryland0.95%
- Massachusetts1.00%
- Minnesota1.02%
- Mississippi0.65%
- Missouri0.79%
- Montana0.69%
- Nebraska1.42%
- Nevada0.47%
- New Hampshire1.46%
- New Jersey1.89%
- New Mexico0.63%
- New York1.45%
- North Carolina0.61%
- North Dakota0.96%
- Ohio1.22%
- Oklahoma0.75%
- Oregon0.78%
- Pennsylvania1.16%
- Rhode Island1.07%
- South Carolina0.45%
- South Dakota1.02%
- Tennessee0.45%
- Texas1.31%
- Utah0.49%
- Vermont1.42%
- Virginia0.71%
- Washington0.79%
- West Virginia0.52%
- Wisconsin1.25%
- Wyoming0.57%